U.S. workers are worried about their retirement, and there’s a general sense of anxiety growing regarding the future. A new survey from Betterment found that 48% of workers in the U.S. believe they’ll need at least $1 million in retirement savings in order to leave the workforce with relative ease. This highlights just how the job market has changed this year, as this is a significantly higher percentage than the 37% of workers who felt the same last year.
Most workers remain wary of the perceived gap in their current earnings and savings plans and the rising cost of living that will likely increase in the coming year, leaving many feeling uncertain about the future. Aiding the workforce in bridging this perceived gap in their earnings is a noble consideration.
Nearly half of U.S. workers believe they will need at least $1 million saved for retirement, but only 28% feel confident in their ability to achieve this goal. (Image: Pexels)
Almost Half of U.S. Workers Worry That They Will Need At Least $1 Million in Savings to Retire Comfortably
Betterment’s retirement findings offer us a very insightful glance into the anxieties that are currently impairing workers. The survey found that 48% of workers believe they will need at least $1 million to retire when the time arrives, which is higher than before. This information makes sense when we take inflation and the rising cost of living into account, but what does appear concerning is that only 27% of workers believe they will actually reach this goal.
Not all hope is lost, as 71% still feel at least somewhat confident that they will be able to retire confidently. This optimism is reassuring, but it does not eliminate the anxiety that has many workers frantic. Over the last five years, the financial anxiety among workers rose from 71% in 2022 to 90% in 2025. Inflation, credit card debt, and housing costs make up the top stressors for workers currently trying to manage their finances. Rising student debt has added to employee savings woes.
The concerns over retirement have grown to the extent that 54% or workers have also contemplated delaying their retirement in order to put in more working years to ensure sufficient savings.
The Generation Difference in Retirement Confidence Among U.S. Workers
U.S workers’ retirement expectations also differ according to generation. Among all workers who are worried about their savings, Gen Xers show the lowest level of confidence. The evidence of this trend has been apparent over the last few years for multiple different reasons. Many have worried about social security funds running out, while others, hit by significant financial challenges over the last few years, have been unable to save confidently. With just a handful of years left until retirement, many worry that they may have to delay their retirement or come out of retirement at a later stage.
According to Betterment’s retirement findings, Gen Z appears to be the most confident about their retirement. This could be a result of their youth and the additional employment years ahead of them; however, it also could be a result of their go-getter attitude that allows them to balance multiple jobs. This confident retirement savings belief is also contrasted by the fact that they remain the most anxious generation with regard to day-to-day finances, unsure of how the job market will help support them right now.
The study also found that men were more confident about their retirement knowledge and savings, which matches older reports of the struggles women face in the workplace and their limited plans towards retirement.
How Can HR Help U.S. Workers with Their Retirement?
The glaringly obvious answer of “just pay workers more” may be on the tip of many tongues, but business decisions are rarely made with as much ease. Increasing employee pay, matching wages to inflation, and making regular adjustments to pay are the best ways to help employees work towards their $1 million retirement savings funds.
However, despite paying employees market rates, there are still reasons why financial anxiety and savings woes may take shape. Debt, illness, and caregiver duties are just some of the other reasons why some employees may not be able to build towards their retirement, and making other support tools available to them is an additional way to help. Supporting workers’ retirement in meeting their expectations can also look like:
- Encouraging employees to create retirement funds and plan for long-term savings
- Setting up 401(k) plans and other retirement benefits, and increasing employer contributions towards them
- Educating workers about key changes to financial institutions, regulations, tax deadlines, and other fiscal developments
- Providing access to training on financial literacy so workers are able to make more informed decisions on spending their money
- Offering educational assistance so workers can avoid student debt in their attempt to update their skills and employability
- Flexible workplace strategies that offer more paid leave, caregiver support, and other benefits that don’t harshly penalize workers for taking time off
The fears surrounding retirement aren’t helpful for either employers or employees. Helping workers put some of their concerns to rest can be a key way for employees to make real, substantial investments in their employees, putting their well-being first as a way to put the company ahead of the rest.
Do you agree that workers may need at least $1 million in retirement savings in order to exit the workforce comfortably? Share your thoughts with us. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
